A Medical Device Daily
Amedica (Salt Lake City) reported that it has filed a statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock valued at up to $74.75 million. All the offered shares will be sold by the company which plans to list its common stock on the NASDAQ Global Market under the symbol AMCA.
Amedica is an orthopedic implants company focused on using its silicon nitride ceramic technologies to develop a broad range of spine and joint implants.
The company's lead product candidates are its Valeo family of spinal implants, used to restore and maintain the alignment of vertebrae in the cervical, or neck region, and lumbar, or lower back region, of the spine.
The company said in its filing that it expects to launch these products by mid-2008, subject to FDA clearance. In 2006, it received FDA clearance for the first-ever ceramic spinal spacer for insertion between two vertebrae to help stabilize the spine. It said it also hopes to introduce additional spinal spacers by the end of 2008, including cortico-cancellous spacers that feature a bone-like structure with a solid, or cortical, load-bearing portion and a cancellous, or porous, structure that is intended to promote bone attachment for secure spinal fixation.
The company said that the Valeo family of spinal implant candidates includes an all-ceramic, motion-preserving cervical disc, for which it anticipates commencing a clinical trial by mid-2009. In addition, the company is incorporating its silicon nitride ceramic technology into the development of the Infinia family of total hip and knee implants. The company said it anticipates initiating a clinical trial for its first total hip implant product candidate in 2009.
The company plans to use the IPO proceeds to fund development of its lead products, to fund R&D, to increase working capital and general corporate purposes. The company said it may also use a portion of our net proceeds to introduce its implant products into selected international markets and for future potential acquisitions.
Amedica has incurred net losses since its inception in 1996. As of March 31, it had an accumulated deficit of $18.2 million. Its net loss was $6.2 million for the year ended Dec. 31, and $5.6 million for the three months ended March 31. As of March 31 it said it had cash, cash equivalents and marketable securities of about $10.3 million. It said it believes that the net proceeds from this offering, together with its cash and cash equivalent balances and interest will be enough to fulfill anticipated cash requirements through the end of 2009.
Morgan Stanley & Co. will act as sole bookrunning manager for the offering. Jefferies & Co. and CIBC World Markets will act as co-lead managers.
Advanced Magnetics (AM; Cambridge, Massachusetts) has priced an underwritten public offering of 2.5 million shares of its common stock at a price to the public of $65.14 per share for proceeds of about $162.85 million before underwriting discounts and commissions.
The number of shares reflects an increase of 500,000 shares over the number of shares anticipated to be sold as previously reported (Medical Device Daily, May 18, 2007).
Advanced Magnetics also granted the underwriters a 30-day option to purchase up to an additional 375,000 shares of common stock, 75,000 shares more than previously reported.
All of the shares are being offered by Advanced Magnetics. The offering is expected to close on or about May 29, subject to customary closing conditions.
Advanced Magnetics utilizes its nanoparticle technology for the development of therapeutic iron compounds to treat anemia and imaging agents to aid in the diagnosis of cancer and cardiovascular disease.
Morgan Stanley & Co. is acting as the sole book-running manager for the offering. Bear, Stearns & Co. is acting as joint lead manager for the offering. Deutsche Bank Securities, Jefferies & Company, and ThinkEquity Partners are acting as co-managers for the offering.
In other financing news:
IntriCon (Arden Hills, Minnesota), a developer of miniature and micro-miniature medical and electronics products, reported closing a $14.5 million in new senior secured credit facilities, including a $10 million revolving credit facility to mature in five years; and a $4.5 million term loan facility, amortized in quarterly principal installments based on a five-year repayment schedule.
The $14.5 million credit facilities were placed with Chicago-based LaSalle Bank.
The company also reported completing its previously disclosed $4.5 million acquisition of privately held Tibbetts Industries (Camden, Maine), a designer of microphone and receiver components used in hearing aids and medical devices (MDD, April 23, 2007). Tibbetts' management is remaining with IntriCon and serving in their current roles.
IntriCon is focused on four key markets: medical, hearing health, professional audio and communications, and electronics.